Benchmarking cost structures is vital to understanding COR and its effects on profitability and business performance. This brief analyzes the performance ratios of the UK accident and health insurance market, at both an industry level and across the top 10 insurers. The expense ratio is examined by its component parts: commission, administration and other acquisition expenses.
Gain insight into the different cost structures held by insurers.
Benchmark your performance ratios against those of major competitors.
Identify which accident and health underwriters became more or less profitable in 2011.
How do your performance ratios compare to the market average and the top 10 insurers?
Which of the markets top 10 insurers performed best in 2011?
How has the market as a whole fared on expense and loss ratios in 2011?
The UK accident and health markets combined operating ratio (COR) improved in 2011, falling by 3.2 percentage points to 96.6%.
The accident and health loss ratio decreased to 71.2% on the back of rate hikes and a decline in claims.
The markets administration expense ratio has dropped for the first time since 2008 as a result of cost-cutting measures being implemented across the insurance industry.